OTS calls for ‘urgent review’ into how UK tax system affects businesses

MTD

OTS calls for ‘urgent review’ into how UK tax system affects businesses

In a new report, the Office of Tax Simplification (OTS) has called for the government to carry out ‘urgent work’ in order to simplify the business tax system for UK firms.

The OTS report focused on businesses owned by individuals and families, and examined how the tax system affects firms at each of the key stages of their development, from starting-up to disposal or cessation. The OTS’s stated aim was to ‘highlight the complexity entrepreneurs face when seeking to establish or grow a business’.

In the report, the tax reliefs and charges that apply to new and growing businesses were examined in order to ascertain how well they operate and whether they achieve their objectives.

The OTS concluded that the reliefs and charges would ‘benefit from an overhaul to reduce complexity’, which would help to make reliefs ‘more accessible’ to firms.

The regulatory body has urged the government to consider streamlining or simplifying a number of key reliefs in order to better help entrepreneurs in starting up and expanding their businesses.

The OTS has highlighted 12 key observations, focusing on two main areas: the operation of the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) schemes; and Entrepreneurs’ Relief (ER), capital gains tax (CGT) gift relief and inheritance tax (IHT) reliefs for business.

The organisation has invited the views of businesses and the industry, and will ‘consider some of the areas touched upon in more depth in the future’.

Paul Morton, Tax Director at the OTS, said: ‘This paper takes a significant first step towards meeting the pressing need to undertake a detailed review of the tax system as it operates across the business lifecycle.

‘It is aimed at helping the businesses that are the lifeblood of the UK economy to maximise their opportunities and to make the system clear and simple to understand and use.’

A Special ‘Office Warming’ Invitation for Settle Businesses

We are delighted to a announce that our Settle office will shortly be moving premises. To mark the change of address we are inviting our Settle clients to a special lunch time ‘office-warming’ event to celebrate this exciting move and we would like to extend that invitation to any other local businesses that would like to join us on the day!

The event will take place on Tuesday 5th March, between 12-2pm, in the new office at:

Unit 10B, Commercial Yard, SETTLE BD24 9RH.

As a guest you can enjoy complimentary sparkling wine and nibbles, speak to our team, and network with other local businesses.

Director Adam Dutton believes this move is a positive one for everyone. He comments:

“Admittedly visiting the accountants isn’t usually something a business owner particularly relishes! However, by offering a comfortable working environment for staff and a pleasant meeting space, we feel we can both add value and make the whole experience that bit more enjoyable for our clients”

We hope that you will consider joining us on the 5th March, and please feel free to bring a business colleague with you. For further information or to register your interest in attending please call 01729 823950 or email skipton@shepherdpartnership.com.